The assignment I need help with is a simple Accounting assignment: allocation of costs for an oil and gas company. No explanations required, just simple calculations for the questions in the Excel doc.

I tip well. Thank you so much!

Exam #2 (Ch. 11 & 12) Problem #1 In 2016, Tyler Petroleum incurred G&G costs for Project Area 1 Identified 2 area of interest and conducted detailed seismic studies: Leases were obtained: In 2017, following payments made by Tyler Petroleum: Delay rental, paid March 2017 Bottom-hole contribution (successful well) Dry-hole contribution Lessor's ad valorem taxes (nonrecoverable) Drilling costs -IDC (January 1, 2017) Equipment The well on Lease B was completed in January, 2018, and was successful. Tyler Petroleum's share of production from well (all sold) Tyler Petroleum's share of year-end estimated reserves Selling price of oil Lifting costs Lease A was abandoned in March, 2018. In January 2019, Lease B was abandoned; no oil produced in 2019. (a) Assume Tyler Petroleum is an independent producer. Determine the following (ignore depletion, but not DD&A; unless otherwise noted, round answers to whole number): Year 2016 -- allocate G&G costs in determination of tax basis and loss: Tax basis per acre for leases acquired in Area 2: (round to two decimal places) Allocate costs of Interest Area 2 to leases acquired: Year 2017 -- determine tax effects of transactions occuring in 2017: Determine new tax basis in leases at end of 2017: Year 2018 -- determine tax effects of transactions occuring in 2018: (use cost depletion) (use the MACRS rate) Determine new tax basis in leases at end of 2018: Year 2019 -- determine tax effects of transactions occuring in 2019: (b) Assume Tyler Petroleum is an integrated producer. Determine the tax effects that would be DIFFERENT for each year: Year 2016 -- allocate G&G costs in determination of tax basis and loss IF different for integrated producer compared to independent producer: Tax basis per acre for leases acquired in Area 2: (round to two decimal places) Allocate costs of Interest Area 2 to leases acquired: Year 2017 -- determine tax effects of transactions occuring in 2017 IF different for integrated producer compared to independent producer: Determine new tax basis in leases at end of 2017: Year 2018 -- determine tax effects of transactions occuring in 2018 IF different for integrated producer compared to independent producer: Determine new tax basis in leases at end of 2018: Year 2019 -- determine tax effects of transactions occuring in 2019 IF different for integrated producer compared to independent producer: $ 35,000 Interest Area Cost 1 $ 2 Interest Area Lease 75,000 50,000 Acres 1 none 2 A B Lease A $ 2,500 4,500 Lease B 12,000 30,000 $ 25,000 3,000 325,000 90,000 $ $ 12,000 bbls 350,000 bbls 55 per bbl 225,000 Area 1 Allocation of G&G costs Detailed seismic costs Tax basis of area of interest Net acreage acquired Tax loss -- immediately deductible Interest Area 2 ### 40% WI 100% WI Tax basis of property Tax basis per acre Lease A Lease B Lease A Lease B Deductible IDC (Lease A&B) Lease A Capitalized Costs Lease B Lease A Lease B L&WE B Lease B L&WE B Net acreage acquired Tax basis per acre Allocated G&G costs Lease bonus Tax Basis Delay rental Bottom-hole contribution Dry-hole contribution Lessor's ad valorem tax IDC Equipment New Tax Basis Tyler Petroleum Gross Income Deductions: Lifting costs Depletion expense Depreciation expense Loss on abandonment, Lease A Total deductions Net Income Lease A New Tax Basis Loss on abandonment, Lease B L&WE B Area 1 Area 2 Lease A Lease B Lease A Lease B Allocation of G&G costs Detailed seismic costs Tax basis of area of interest Net acreage acquired Tax loss -- immediately deductible Tax basis of property Tax basis per acre Net acreage acquired Tax basis per acre Allocated G&G costs Lease bonus Tax Basis Deductible IDC (Lease A&B) Lease A Capitalized Costs Lease B Lease A Lease B L&WE B L&WE B Delay rental Bottom-hole contribution Dry-hole contribution Lessor's ad valorem tax IDC expensed IDC capitalized Amortized IDC Equipment New tax basis Tyler Petroleum Gross Income Deductions: Lifting costs Depletion expense Depreciation expense Amortized IDC IDC B Loss on abandonment, Lease A Total deductions Net Income Lease A New tax basis Loss on abandonment, Lease B Lease B L&WE B IDC B Bonus Paid $ $ 45 per acre 35 per acre Exam #2 (Ch. 11 & 12) Problem #2 WI owners of the Blue Lease: Tyler Petroleum Co. (operator) Houston Corp. East Texas Energy Co. Royalty Interest on the Blue Lease: 1/8 60% 20% 20% Royalty decimal interest? (carry 4 places) April 1 - Houston Corp. gives notice of nonconsent on the drilling of Oil Well #3. Tyler Petroleum and East Texas Energy agree to carry Houston's share proportionately. Nonconsent penalty Oil Well #3 drilling and completion cost On production, August 1 300% $ Production and operating information: 850,000 Month August September October November (ignore severance tax) (a) Determine Tyler Petroleum's and East Texas Energy's proportionate shares of drilling and equipping costs: (carry decimals out 4 places) Tyler Petroleum East Texas Energy (b) Complete the table to calculate payout by Tyler Petroleum: Sales volume Price/bbl Gross sales Net of royalty decimal int. Net Sales Operating Exp. Net revenue Total revenue to Tyler Tyler's share Houston's share Payout: Houston's share of well cost Tyler's proportion of Houston's cost Recoverable by Tyler (including penalty) Amount to be recovered Recovered in August Balance to be recovered Recovered in September Balance to be recovered Recovered in October Balance to be recovered Recovered in November Balance to be recovered (c ) Prepare the journal entry for Tyler Petroleum during August to book its share of revenue assuming Tyler Petroleum sells all of the production and then remits East Texas Energy's share to East Texas net of royalty: WI WI WI Production 7,500 10,000 17,000 22,000 bbls bbls bbls bbls Interest of Consenting Parties August $ Operating Costs Sales Price/bbl 85,000 $ 65 125,000 60 140,000 55 230,000 57 Proportion of Houston's Costs and Revenues September October November